Calculate the operating cash flow for the year

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Reference no: EM131520350

Tubby Toys estimates that its new line of rubber ducks will generate sales of $7.80 million, operating costs of $4.80 million, and a depreciation expense of $1.80 million. Assume the tax rate is 30%.

a. Calculate the operating cash flow for the year by using all three methods: (a) adjusted accounting profits; (b) cash inflow/cash outflow analysis; and (c) the depreciation tax shield approach. (Enter your answers in millions rounded to 2 decimal places.)

Method Cash Flow

Adjusted accounting profits $_____ million

Cash inflow/cash outflow analysis _______million

Depreciation tax shield approach _______ million

Reference no: EM131520350

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